SHANGHAI, Sept 7 (Reuters) - China's stock markets rose
modestly on Wednesday, led by infrastructure and raw materials
firms, after Beijing vowed to step up fiscal policy efforts to
support the economy.

China's State Council, or cabinet, also said it would
encourage policy banks to extend more credit and reaffirmed the
government's commitment to reducing overcapacity, in a notice
published late on Tuesday.

The CSI300 index rose 0.3 percent to 3,352.65
points by the end of the morning session, while the Shanghai
Composite Index gained 0.4 percent to 3,101.74.

The infrastructure sector rose 0.9 percent while
an index tracking raw material stocks gained 0.7 percent, as
investors expect the government to approve more infrastructure
projects, boosting demand for goods from cement to steel.

Environment-related stocks, including Zhejiang Weiming
Environment Protection and Beijing Capital
, also saw a robust rally as China's policymakers are
determined to achieve sustainable development by combating
pollution.